Gogo boosts IFE aircraft conversions
August 5, 2016
By Chris Forrester
In Flight Entertainment (IFE) and broadband-in-the-sky specialists Gogo says that this year it will equip up to 100 aircraft with its satellite-delivered Ku-band IFE system. But next year that number will expand dramatically, with around 350-450 aircraft equipped with its technology.
Gogo, in its Q2 results, said that some 600 new aircraft were now contracted during Q2 to be fitted with its equipment, bringing its total backlog to more than 1200 aircraft.
Gogo says that North America will get around 300 incremental Ku-band installations (up from about 200 today). The Rest of the world will see about 75 aircraft equipped this year, and another 200 or so in 2017.
“We are very pleased to announce that our next generation 2Ku technology is now flying on Aeromexico, Delta, and Virgin Atlantic aircraft,” said Gogo’s President/CEO Michael Small. “We are focused on installing our 1,200 2Ku awarded aircraft, continuing our global expansion, and winning new international airlines.”
Small added that their overall return on investment expectations see gross margin payback for each installation in two-to-three years. Monthly ARPA (per aircraft) was $11,483, up 2 per cent y-o-y driven primarily by increased passenger usage. “Q2 2016 ARPA increased an estimated 14 percent year-over-year excluding aircraft added since the beginning of 2015, which primarily include regional jets and aircraft operated by new airline partners,” said Gogo.
However, international (Rest of World) aircraft usage and revenues showed huge growth. “ARPA increased to $12,065, up 30 per cent year-over-year, primarily driven by increased passenger usage,” said the company.